1. 11 Services and Nonprofit Organization Marketing Prepared by
Chapter 11 11
Services and Nonprofit Organization Marketing
Prepared by
Deborah Baker
Texas Christian University

2. Chapter 11
Learning Objectives
1. Discuss the importance of services to the economy
2. Discuss the differences between services and goods
3. Describe the components of service quality and the gap model of service quality

3. Learning Objectives (continued)
Chapter 11
Learning Objectives (continued)
4. Develop marketing mixes for services
5. Discuss relationship marketing in services
6. Explain internal marketing in services

4. Learning Objectives (continued)
Chapter 11
Learning Objectives (continued)
7. Discuss global issues in services marketing
8. Describe nonprofit organization marketing

5. The Importance of Services
Chapter 11
The Importance of Services
79% of workers are in service sector.
U.S. service exports will top $650 billion by 2010, the same value as manufactured goods.
Service occupations will be responsible for nearly all net job growth through 2012.
64 of Fortune’s top 100 companies are service companies. 1

6. How Services Differ from Goods
Chapter 11
How Services Differ from Goods
Intangible
Inseparable
Heterogeneous
Perishable
Online: National Amusements and AMC Theatres
Online 2

7. Components of Service Quality
Chapter 11
Components of Service Quality
Tangibles
Empathy
Assurance
Responsiveness
Reliability
Gaps in Quality
Can Appear at
Several Points 3

8. Product Strategies for Services
Chapter 11
Product Strategies for Services
Service
Mix
Standardization or Customization
Core and Supplementary
Process 4

9. Service Processing People Processing Service Processing Categories
Chapter 11
Service Processing
Service Processing Categories
Mental Stimulus Processing
People
Processing
Possession Processing
Information Processing 4

10. Marketing Mixes for Services
Chapter 11
Marketing Mixes for Services
PLACE
PROMOTION
PRICE
PRODUCT = SERVICE
Process
Core and Supplementary
Mass Customization
Standardization
Number of outlets
Direct
Indirect
Location
Tangible cues
Personal information
Strong image
Post-purchase communication
Revenue oriented
Operations
oriented
Patronage oriented
Summary Slide 4

11. Relationship Marketing in Services
Chapter 11
Relationship Marketing in Services
Level 2
Social
Financial
Level 1
Level 3
Structural 5

12. Internal Marketing Activities
Chapter 11
Internal Marketing Activities
Competing
for Talent
Offering a Vision
Stressing Teamwork
Training Employees
Empowerment
Knowing Employees’ Needs
Rewarding Performance 6

13. Nonprofit Organizations
Chapter 11
Nonprofit Organizations
Government
Private Museums
Theaters
Schools
Churches
Other Non-Government
Nonprofit Organizations 8

14. Unique Aspects of Nonprofit Organization Marketing Strategies
Chapter 11
Unique Aspects of Nonprofit Organization Marketing Strategies
Setting of Marketing Objectives
Selection of Target Markets
Development of Marketing Mixes
Online 8

15. Target Markets Unique Issues of Nonprofit Organizations
Chapter 11
Target Markets
Apathetic or strongly opposed
targets
Pressure to adopt undifferentiated segmentation
Complementary positioning .
Unique Issues of Nonprofit
Organizations 8

16. Distinctions between Business and Nonprofit Organizations
Chapter 11
Product Decisions
Distinctions between Business and Nonprofit Organizations
Benefit complexity
Weak benefit strength
Low involvement 8

17. Promotion Decisions Professional volunteers Sales promotion activities
Chapter 11
Promotion Decisions
Sales promotion activities
Public service advertising
Professional volunteers
Online 8

18. Pricing Decisions Pricing objectives Nonfinancial prices
Chapter 11
Pricing Decisions
Below-cost pricing
Separation between payers and users
Indirect payment
Nonfinancial prices
Pricing objectives
Characteristics
Distinguishing
Pricing Decisions of Nonprofit Organizations 8